GS Yuasa Corporation Business report FY2008
|Financial overview||(in million yen)|
|-||FY2008||FY2007|| Rate of
|Sales||283,421||312,012||(6.7)||- Sales decreased due to a sharp decline in demand, mainly for automotive batteries in Japan in the third quarter onward.|
|Operating income||14,276||12,384||20.1||- Operating income increased as a result of a decline in the price of lead, one of the main materials in the Company's, rationalization and cost reduction.|
|Ordinary income||10,979||9,946||16.1||- Despite foreign exchange losses due to a strong yen, ordinary income increased thanks to an increase in profit of equity method affiliates.|
|Current net income||4,228||2,670||189.7||
- The Company posted an extraordinary profit including profit on sale of the former Takatsuki plant site and other profits. On the other hand, the Company also posted an extraordinary charge, including appraisal loss of inventory assets as a result of changes in the accounting system and loss brought about by inappropriate transactions that were discovered at its consolidated subsidiary. Even if considering the amount of tax including income taxes-deferred, the Company marked an increase in current net income.
|Battery and power supply|
- New vehicle and replacement sales of automotive batteries in Japan decreased due to a drop in new vehicle sales volume and decreased demand for replacement batteries.
|Operating income||16,538||12,458||32.7||- Japan operating income increased as a result of rationalization
based on the 2-Year Revival Plan for the Automotive Battery
Business as well as the decline in the purchasing cost of lead,
the main material of its products.
- Operating income also increased overseas as a result of lower material prices and other factors.
- Honda Motor Co., Ltd. and the Company announced on March 24, 2009 that they signed a contract to establish a new joint venture company for manufacturing, sales and R&D of high-performance lithium-ion batteries, especially for hybrid vehicles. Since the signing of a basic agreement in December of last year, they have engaged in a series of discussions to determine concrete plans. The new company, Blue Energy Co., Ltd., is scheduled to be established April 1, 2009 with three billion yen in capital. Potential increase in capital and capital surplus up to 15 billion yen may be executed. The address of headquarters, located at the site of the Company's headquarters, is: Minami-ku, Kyoto. 51% of the capital will be held by GS Yuasa Power Supply Ltd., a wholly-owned subsidiary of the Company, while 49% will be held by Honda. (From an article in the Nikkan Jidosha Shimbun on Mar. 26, 2009)
Among this, the investment in the battery and power supply division was 4,942 million yen.
New Facilities (Selected)
(in million yen)
|Date of start||Scheduled date of completion||Purpose of the investment|
|GS Yuasa Corporation||Kyoto, Japan||R&D facilities||571||Mar., 2009||Mar. or after Apr., 2010||Expand R&D facility|
|GS Yuasa Power Supply Ltd.||Kyoto, Japan||Manufacturing facilities for lead storage batteries for automotive use||670||Mar., 2009||Mar. or after Apr., 2010||Reduce costs|
|Manufacturing facilities for power supply devices
and lead storage batteries for industrial use
||1,567||Mar., 2009||Mar. or after Apr., 2010||Reduce costs|
|Ztong Yee Industrial Co., Ltd.||Yungkang Tainan, Taiwan||Manufacturing facilities for lead storage batteries||415||Dec., 2008||Mar. or after Apr., 2010||Increase production capacity|
|Yuasa Battery (Guangdong) Co., Ltd.||Guangdong, China||Manufacturing facilities for lead storage batteries||257||Dec., 2008||Mar. or after Apr., 2010||Increase production capacity|
|Yuasa Battery, Inc.||Pennsylvania, USA||Manufacturing facilities for lead storage batteries||282||Dec., 2008||Mar. or after Apr., 2010||Increase production capacity|
|Yuasa Battery (Thailand) Pub. Co., Ltd.||Bangkok, Thailand||Manufacturing facilities for lead storage batteries||593||Dec., 2008||Mar. or after Apr., 2010||Increase production capacity|